Ripple (XRP) Approaching Next Crucial Break: Here’s Why $0.35 Holds Key

Ripple surged higher and climbed above the $ 0.3200 resistance area against the US Dollar. However, XRP price is now facing a strong resistance near the $ 0.3400-$ 0.3500 area.

  • Ripple price surged to a new 2020 high at $ 0.3399 before correcting lower against the US dollar.
  • The price is now consolidating gains above the $ 0.3150 support area.
  • There is a major contracting triangle forming with resistance near $ 0.3310 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The price could either surge above $ 0.3400 or it might start a significant correction below $ 0.3000.

Ripple Price Facing Key Hurdles

In the past two days, ripple saw a sharp increase in buying interest above the $ 0.2900 resistance. As a result, XRP rallied above the $ 0.3000 and $ 0.3200 resistance levels.

Moreover, there was a close above the $ 0.3200 level and the 100 hourly simple moving average. Finally, the price tested a major resistance area near $ 0.3400-$ 0.3500 (as discussed in yesterday’s post using the daily chart).

Ripple faced a strong selling interest near $ 0.3400 and a new 2020 high was formed near $ 0.3399. Recently, there was a downside correction below the $ 0.3300 area. The price even broke the 23.6% Fib retracement level of the upward move from the $ 0.2998 low to $ 0.3399 high.

There were a couple of spikes below $ 0.3200, but the price remained well bid above $ 0.3200. More importantly, there is a major contracting triangle forming with resistance near $ 0.3310 on the hourly chart of the XRP/USD pair.

Ripple Price

Ripple Price

Therefore, ripple seems to be facing a lot of hurdles on the upside, starting with $ 0.3310 and up to $ 0.3500. A successful daily close above the $ 0.3500 level could initiate a long term uptrend towards $ 0.4000 or even $ 0.5000.

Key Uptrend Supports

The first key support is near the triangle lower trend line at $ 0.3200. It also coincides with the 50% Fib retracement level of the upward move from the $ 0.2998 low to $ 0.3399 high.

If the price fails to stay above the $ 0.3200 support, it could start a downside extension. In the mentioned case, the first target for the bears could be $ 0.3080.

However, the main support is near the $ 0.3000 level, below which there is a risk of a drop towards the $ 0.2920 support or the 100 hourly SMA.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly moving in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is still above the 50 level, with positive signs.

Major Support Levels – $ 0.3200, $ 0.3080 and $ 0.3000.

Major Resistance Levels – $ 0.3310, $ 0.3400 and $ 0.3500.

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Analysis – NewsBTC

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